Larken Associates Secures $42M Loan for Multifamily Property in Readington, NJ
ConnectOne Bank provides a three-year, floating-rate loan for Larken Associates' 254-unit multifamily property in Readington, NJ.
Larken Associates, a New Jersey-based real estate developer and manager, has secured a $42 million loan from ConnectOne Bank for its 254-unit multifamily property located at 460 U.S. HWY Route 22 West in Readington, NJ. The three-year, floating-rate loan was arranged by JLL Capital Markets and will be used to refinance existing debt on the property.
The property, which was built in 1972 and renovated in 2018, features a mix of one- and two-bedroom units ranging from 700 to 1,200 square feet. The units are spread across 14 two- and three-story buildings on a 22-acre site. The property also includes a clubhouse, fitness center, swimming pool, and tennis court.
Larken Associates acquired the property in 2017 for $34.5 million, according to public records. The property is currently 98% occupied, according to JLL.
ConnectOne Bank’s Mark Zurlini and Thomas D. Hatt led the financing for the loan. Jim Cadranell, Steven Klein, and Max Custer of JLL Capital Markets represented Larken Associates in the transaction.
The loan provides Larken Associates with additional capital to continue investing in and improving the property. The refinancing also allows the company to take advantage of current market conditions, including low interest rates and strong demand for multifamily properties in the region.
Overall, the deal highlights the continued strength of the multifamily market in New Jersey and the broader Northeast region. Despite the challenges posed by the COVID-19 pandemic, demand for multifamily properties has remained strong, driven in part by low interest rates and a growing preference for rental housing among younger generations. As a result, investors and lenders continue to show strong interest in the sector, providing developers and owners with ample capital to pursue new projects and improve existing properties.